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Discussion Starter · #1 ·
not official press release but....<p><A HREF="http://www.chinacartimes.com/2009/06/17/geely-becomes-volvos-new-master" TARGET="_blank">http://www.chinacartimes.com/2...aster</A>/<p>NB Privately owned Geely sold 20% of company onto Hong Kong stock exchange recently to raise cash.<p>Volvo production increased in china for local markets (already have some models made by Changan)<p>No upper limit to volvo product line now. Model range expansion highly likely as well as Volvo assising Geely with their own range of product = middle and lower class and high volume
 

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Re: Geely buys Volvo (Shimon)

"Details are still sketchy" being the key line from the article.<p>I don't believe this for a moment. There is nothing in the Swedish press about Volvo being sold.
 

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I think this comment is a pretty good undermining of the article:<p>"You can write this article off as a false rumor based on the fact that it claims that 1. Geely would move production line to China <= Socialist Swedish government would never approve this. Any bidder must agree to keep all Swedish lines open before getting a Swedish government approval. 2. Geely would inject $10 billion into Volvo. <= Where is Geely going to come up with $10 billion?"<p>Someone over-anxious to get the scoop figured the best way was just to publish rumor.<br>
 

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Discussion Starter · #5 ·
I think the article refers to a chinese production line to replace the JV one with Changhan. A number of volvo models are made by Changan for the local chinese market.<p>Swedish government is not interested in saving volvo and therefore would have no involvement if and only if Geely were to move production to china. However....the article isnt talking about Torslanda and Ghent being shut immediately and production moved to china. NB it is far more likely that any chinese production would be to compliment Ghent and Torslanda and provide china and other local markets with Volvos....rather that a total replacement of European plants
 

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Re: (Shimon)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>Shimon</b> »</i></TD></TR><TR><TD CLASS="quote">Swedish government is not interested in saving volvo and therefore would have no involvement if and only if Geely were to move production to china.</TD></TR></TABLE><p>They do have an interest in getting reelected.
 

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Re: (Shimon)

Are they looking to set up Volvo dealers in the Asia/Pacific rim?<p>Did they pay $2b - the fire sale price?<p>Chang'an-Volvo is out of the equation just like that and Geely takes the baton? What price did Chang'an-Volvo receive?<p>Will the Geely $10b investment in Volvo be cash on the barrel or smoke and mirrors?<p>Interesting Geely chose the XC90 SUV as I imagine they would like to compete with Hummer. There is a shortage of SUV in the Asia/Pacific rim. <p>But Ford Volvo doesn't need Geely to accomplish this as the existing partnership is already established! Why reinvent the wheel for a measly 2b on a sale and some possible guarantee of a 10b future investment. Chang'an-Volvo could get the same loan from the Chinese government just like Geely.<p>Is Ford really that desperate? Or are they just doing donuts clouding the air?
 

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Re: (VolvoD)

OFFICIAL VOLVO STATEMENT: <p>"An announcement related to the sale of Volvo Car Corp. would only come from Ford Motor Company. As of today, neither Ford Motor Company nor Volvo Car Corporation in Sweden has made any announcement regarding the sale of Volvo. Reports of such a sale by any media outlet are speculative and, therefore, are not accurate."<p>-James Hope, Volvo North America Product Communications
 

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Re: ([email protected])

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>[email protected]</b> »</i></TD></TR><TR><TD CLASS="quote">OFFICIAL VOLVO STATEMENT: </TD></TR></TABLE><p>This in and of itself does not mean much. Saab and GM denied the Koenigsegg Group purchase well after it was reported by Swedish television. But I still don't believe this Geely rumor.
 

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Re: (frankhoffy)

I'm not sure an all-Swedish Volvo is what we need. If it wasn't for Ford I suspect Volvo would be readying to launch their next generation P2-based cars in the next couple of years...<p>I don't think Koenigsegg would have been good for Volvo because he and his partners could never raise the cash needed for Volvo to do what it needs to to build a competitive next generation platform (if they could I bet they would have instead of investing in tiny Saab given Koenigsegg's historical ties to Volvo.)<p>I was just reading today that the Qatar government (?) is about to announce a major investment in Porsche which is apparently faltering now. I don't understand how they went from being able to buy a controlling interest in VW/Audi/etc to being in trouble so fast...<p>Someone with deep pockets (e.g., Hyundai) would do well to grab Volvo and Porsche at firesale prices. (Of course Hyundai already has a good RWD platform and strong V8 they're just putting to good use so who knows what they would really get out of a Volvo or Porsche buy - they apparently aren't seriously interested.)
 

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Re: (ErikGbg)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>ErikGbg</b> »</i></TD></TR><TR><TD CLASS="quote">I dont't want to believe...</TD></TR></TABLE><p>you don't have to. Its not true. <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0">
 

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Re: (VolvoD)

Now Swedish press is reporting on this. From <I>Dagens Industri</I>:<p><A HREF="http://di.se/Avdelningar/Artikel.aspx?ArticleID=2009\06\18\342172&sectionid=BilMotor" TARGET="_blank">http://di.se/Avdelningar/Artik...Motor</A> (basically repeats information in Chinese media)<p>Followed by:<p><A HREF="http://di.se/Avdelningar/Artikel.aspx?ArticleID=2009\06\18\342219&sectionid=BilMotor" TARGET="_blank">http://di.se/Avdelningar/Artik...Motor</A> ("Geely Affair Far From Certain")
 

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Re: (Munin)

Oh My God, Please not China. Made in China Volvo would spells doom to Volvo for life. Please please please Volvo history and its Scandinavian's origin must be preserved. Ford and Mercedes will always find support through private investors or government to keep it afloat to remain American and German. For a mere $3 billion Volvo goes to China? The Volvo Group can afford $3 billion to buy it back from Ford...why aren't they making a move on this?
 

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Re: (bonsbons)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote, originally posted by <b>bonsbons</b> »</i></TD></TR><TR><TD CLASS="quote">The Volvo Group can afford $3 billion to buy it back from Ford...why aren't they making a move on this?</TD></TR></TABLE><p>Because they want to maximize their profits.
 

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Re: (bonsbons)

A Chinese buyer could be the best thing that every happened to them. Establishing a production base there would be like having built a plant in the US in the 50's. Let's face it, the heyday of the US market is past, it is going to be flat for a long time coming; its overall growth potential is limited.<p>In the US all significant sales growth can only come from stealing sales from the other companies, and we all know how well that's gone. In China they will have an opportunity for huge first time sales growth. If I was the marketing director, I'd be drooling at this opportunity.<p>This decision can't be thought of from a US-centric postion, it's not about the USA or Europe anymore for Volvo, it is about the rest of the world, especially China, Russia and, to some degree, India. The automotive industry is shifting east in a big way.<p>And lets face it, Ford needs cash and China has it.
 

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Re: (MrTippy)

This is just a rumour, probably to lead Ford shares up. Geely has repeatidly insisted that it is not interested in Volvo...<br>If Volvo is sold to a chinese maker I will delete my account here and I will never bother for Volvo again. And I will never buy a Volvo, neither made in Sweden nor China, as soon as it will be owned by a Chinese company. Ailing Saab managed to be sold to Swedish investors and mostly profitable Volvo will be sold to Chinese like Hummer?<br>If it proves true, <IMG NAME="icon" SRC="http://www.vortexmediagroup.com/images/banghead.gif" BORDER="0">
 

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Re: (MrTippy)

Can't this be done with a partnership instead of outright ownership, like Ford (which includes Volvo and Mazda) is already doing?<p>I never thought I'd see the day when Saab's situation would be looking better than Volvo's. This is very scary.
 
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